Reuters blog archive
from The Great Debate:
People I know in Russia, members of the intelligentsia and professionals who have long been critical of President Vladimir Putin’s anti-Western stance, have suddenly turned into America-bashers. Many have been swept away by Putin’s arguments that the United States, not the Kremlin, is destabilizing Ukraine.
Since the current crisis broke in Ukraine over its efforts to side with the European Union rather than Russia, Putin has been at war with the United States. He seems intent on proving that a U.S.-centric world order is over and that Europe should decide on its own what its relations with Russia will be.
Putin’s big lie reached fever pitch after Malaysian Airlines Flight 17 went down over eastern Ukraine on July 17. Putin swiftly placed the blame on the Kiev government and its reputed U.S. masters -- not even bothering to express proper condolences about the dead.
Instead, the Russian president disingenuously asked for transparency in the investigation into the downing of the plane. In his laconic statements, Putin promised cooperation but delivered little. He insisted issues of politics had to be kept out of the tragedy.
Could the shooting down of a Malaysia Airlines plane over Ukraine be a fundamental turning point in the crisis that has pitted Russia against the West? And if so which way – towards rapprochement or a further escalation?
Kiev accused militants fighting to unite eastern Ukraine with Russia of shooting down the Boeing 777 carrying nearly 300 people from Amsterdam to Kuala Lumpur with a Soviet-era ground-to-air missile. Leaders of rebels in the Donetsk People's Republic denied any involvement, although around the same time their military commander said his forces had downed a smaller Ukrainian transport plane.
from Ian Bremmer:
As Germany basks in its World Cup victory, it’s easy to forget that one of the most telling geopolitical moments of the tournament came during the Germany-U.S. game. As American fans chanted “U-S-A! U-S-A! U-S-A!” the Germans countered with, “N-S-A! N-S-A! N-S-A!”
In the weeks since, relations have crumbled. After it learned that a German intelligence officer allegedly spied for the United States, Germany expelled the CIA station chief in Berlin -- a rare move by a close American ally.
from The Great Debate:
What were they thinking?
In the wake of last fall's revelation that the National Security Agency had wiretapped German Chancellor Angela Merkel's cell phone, the report of U.S. intelligence’s involvement in two other likely cases of spying on Germany is mind-boggling.
Now the story has taken a dramatic new turn, with Germany expelling the CIA chief of station in Berlin -- an almost unprecedented step by an ally. This unusual action reflects how seriously the Merkel government takes these spying allegations.
Ukrainian forces pushed pro-Russian rebels out of their stronghold of Slaviansk on Saturday. Its re-capture represents Kiev's most notable military victory in three months of fighting in which more than 200 Ukrainian troops have been killed as well as hundreds of civilians and rebels.
The regions of Donetsk and Luhansk are likely to be next in the government forces’ crosshairs.
from Anatole Kaletsky:
Matteo Renzi, the prime minister of Italy who took the revolving presidency of the European Union this week, seems to be the sort of man that Napoleon was referring to when he reputedly said that the key qualification he sought in recruiting a general was good luck.
Renzi become prime minister without even needing to win an election because Silvio Berlusconi and all other rivals self-destructed. He took power just after Italy passed the lowest ebb of its economic fortunes. In May, he was rewarded for his good fortune by Italy’s voters, who anointed him with a strong democratic mandate in the same European elections that discredited almost all Europe’s other national leaders. Now he is taking the helm in Europe, as an economic recovery is starting and the European Central Bank is swinging decisively in support of growth.
The Mansion House dinner in the City of London is one of Britain’s big set-pieces of the year featuring speeches by Bank of England Governor Mark Carney and finance minister George Osborne.
Carney will be speaking a week before the Bank’s Financial Policy Committee meets and is expected to road test its new tools to calm the housing market. Among other measures, the BoE could recommend caps on the size of home loans granted in relation to a property’s value or a borrower’s salary.
Who are the two most important people in the EU? It’s hard to argue against Angela Merkel and Mario Draghi and they meet today in Berlin.
It’s supposed to be a private meeting but of course we’ll be digging, particularly for any signs that the German leader is for or against the European Central Bank printing money if it is required to beat back deflation.
After the European Central Bank opened its toolbox and deployed pretty much everything it had left, bar printing money, the question is if and when QE becomes a live possibility.
ECB chief Mario Draghi pointedly said at his monthly news conference that all policy options had not been exhausted.
German resistance to such a move will remain, however, and Draghi’s deputy, Vitor Constancio, has already intimated that it will take until late this year to judge whether the latest gambits have made a difference before moving onto the next stage.
Swedish Prime Minister Fredrik Reinfeldt will host Germany’s Angela Merkel, Britain’s David Cameron and Dutch premier Mark Rutte at his private residence over two days to discuss reforming the EU and "achieving a more efficient EU that is focused on creating jobs and growth".
After EU elections delivered strong returns for far-right and far-left parties, EU leaders say they have recognized the need to refocus on what matters to their people. But at the same time, the orthodox camp is determined to keep bearing down on debt and the bloc’s heads are arguing over who should take the top jobs in Brussels which set the tone.